Is NORX the Next Big Penny Stock Promo?
Update: Norstra Energy, Inc. (OTC: NORX) made a spectacular run earlier this year from a start point of around $0.40 the stock exploded to highs over $2 in early June before collapsing as I predicted it would. Currently trading around $0.80 the stock has probably seen its all-time highs and may drop from here.
According to the recent pr; Norstra Energy Inc., is a US based oil and gas Exploration Company with interests in over 10,000 acres of prime Bakken formation land in Montana. The company is targeting the South Sun River Prospect for a horizontal Bakken well proving the prospect from exploration to production.
On March 18, NORX announced that it has entered into a farm-out agreement with Summit West Oil, LLC. for the South Sun River Bakken Prospect.
The South Sun River Prospect was identified by the Company's management as an excellent target for a Bakken well. It consists of over 10,000 acres of prime Bakken acreage with almost 10 years left on most of the leases. Bakken development is considered simple and basic horizontal drilling. Under the Farm Out Agreement Norstra will provide $200,000 for short term working capital and drill and complete a first well into the Bakken Oil Formation by December 31, 2013; a second well into the Bakken Oil Formation by June 30, 2014 and drill and complete a third well into the Bakken Oil Formation by December 31, 2014.
Upon completion of these drilling obligations, Norstra shall have earned 100% working interest in the entire acreage constituting the farm-out land. In the event that Norstra only completes the first and/or the first and second well, but elects not to proceed with the second and/or third well, Norstra will earn the above mentioned working interests only on the spacing unit on which well(s) have been drilled.
"This is a fantastic opportunity for Norstra and its shareholders," said Mr. Landry, the company's CEO. "I believe that this area of Montana could become the next Williston basin in time and we're well positioned to be a player in the area," he continued.
Conclusion: Currently trading at a market valuation of just around $20 million NORX is moving up steadily on accelerating volume. Clearly this looks like a promo in the early stages, who is behind it we still don't know. Stock Market Authority (SMA)? At this point it is still much too early to guess however I will update this article as soon as any information becomes available.
Norstra Energy, Inc. (OTC: NORX) was incorporated under the laws of the State of Nevada, U.S. on November 12, 2010. The Company is in the exploration stage as defined under Accounting Standards Codification ("ASC 915") and it intends to engage in the exploration and development of oil and gas properties.